Default (finance)

In finance, default is what occurs when a party is unwilling or unable to pay their debt obligations. This can occur with all debt obligations including bonds, mortgages, loans, and promissory notes.

Related Topics:
Finance - Debt - Bonds - Mortgage - Loan - Promissory note

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In corporate finance, a default is typically a prelude to bankruptcy.

Related Topics:
Corporate finance - Bankruptcy

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With most mortgages and loans the total amount owed becomes immediately payable on the first instance of a default of payment. This is sometimes referred to as cross default.

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